Finance Ministry Rolls Out SPP‑TDLN for Digital Transaction Tax

Indonesia’s Finance Ministry announced on 6 November 2025 the development of the Foreign Digital Transaction Tax Collection System (SPP‑TDLN). The system is intended to collect VAT on digital transactions conducted by foreign providers.

Previously, tax was collected through a self‑assessment regime, where taxpayers calculated and reported their own liability. Under SPP‑TDLN, designated technology platforms such as payment gateways (payment service providers), acquirers (entities that process customer payments) and issuers (financial instrument providers) will automatically collect and remit tax at the moment of each transaction, as mandated by Article 32A of the Tax Harmonization Law and Government Regulation No. 68/2025.

The automated approach aims to boost compliance and revenue from the millions of daily micro‑transactions, closing gaps in tax collection from the digital economy. Authorities expect the system to enhance fairness and legal certainty for taxpayers and the state.