Government Begins Taxing Foreign Digital Transactions

The government has implemented the Foreign Digital Transaction Tax Collection System (SPP-TDLN) effective September 10, 2026, with PT Jalin Pembayaran Nusantara appointed as the system operator. Banks will collect, remit, and report VAT on foreign digital services purchased by Indonesian consumers. The system was tested through a sandbox, with four Himbara banks participating ahead of the official rollout. The government has yet to estimate additional revenue, citing uncertainty over previously untaxed transactions.