Banking 2026-11-10

Indonesia's Foreign Digital Transaction Tax Collection System Takes Effect with 5 Banks and LinkAja as First Issuers

The DJP mechanism for collecting VAT on foreign digital transactions took effect on 9 November 2026, with BRI, Mandiri, BNI, BTN, BSI, and LinkAja as the first appointed issuers.

Indonesia's Directorate General of Taxes (DJP) implemented the System for Collecting Tax on Foreign Digital Transactions (SPP-TDLN) on 9 November 2026. DJP clarified that the mechanism is not a new tax, but a collection mechanism for value-added tax on foreign digital transactions that meet taxable object criteria. Personal fund transfers and remittances are not automatically subject to VAT, and the scheme was tested in a sandbox prior to rollout.

Six issuers were appointed on 25 September 2026: state-owned banks BRI, Mandiri, BNI, BTN, and BSI, together with digital wallet operator LinkAja. DJP has not confirmed claims that private banks, fintech firms, and e-commerce platforms would join collection immediately; appointments of additional issuers will be announced after a stabilization period.

From the effective date, Indonesia's largest banks carry new operational duties covering collection, remittance, and reporting of VAT on foreign digital transactions, involving cross-system reconciliation between banks, DJP, and merchants. A related income tax provision for online marketplace sellers (PPh 22) took effect on 1 October 2026.