Indonesia’s digital economy sector generates 1.75 billion USD in tax revenue

September 17, 2024 | 12:02

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The tax revenue from the digital economy sector in Indonesia reached 27.85 trillion IDR (1.75 billion USD) from 2022 to the end of August 2024, according to the Taxation Directorate General under the country’s Finance Ministry.

Indonesia’s digital economy sector generates 1.75 billion USD in tax revenue, Illustrative photo ( Photo: Thejakartapost.com)

Jakarta – The tax revenue from the digital economy sector in Indonesia reached 27.85 trillion IDR (1.75 billion USD) from 2022 to the end of August 2024, according to the Taxation Directorate General under the country’s Finance Ministry.

The revenue comes from the collection of Value Added Tax (VAT) on e-commerce or marketplaces, crypto tax, peer-to-peer lending (P2P Lending) or online loan tax, and procurement tax through the Government Procurement Information System (SIPP tax).

Director of Counseling, Services, and Public Relations Dwi Astuti said that since 2020, e-commerce VAT has deposited 22.3 trillion IDR from 166 collectors, with 5.39 trillion IDR in 2024 only.

Meanwhile, crypto tax revenues since 2022 have amounted to 875.44 billion IDR, comprising 411.12 billion IDR from income tax of crypto trade and 463.32 billion IDR of crypto VAT.

Fintech tax for online loans also contributed tax revenues of 2.43 trillion IDR between 2022 and August 2024.

Tax revenues from other digital economic businesses came from SIPP tax revenues, reaching 2.25 trillion IDR.

SIPP tax revenues consisted of 152.74 billion IDR of income tax and 2.09 trillion IDR of VAT.

According to Dwi, Indonesia will continue to tax digital business actors in order to create justice and equality between e-commerce and conventional trade.

The ministry also explores potential tax revenues from other digital economic businesses such as crypto taxes on crypto asset trading transactions, fintech taxes on loan interest paid by loan recipients, and SIPP taxes.

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