Jakarta. The Finance Ministry said Tuesday that ordinary bank transfers and digital wallet transactions will not automatically be subject to value-added tax (VAT), clarifying public confusion over plans to expand tax collection on cross-border digital transactions.

Finance Minister Suahasil Nazara said the government had introduced no new policy imposing VAT on every transfer between bank accounts or through electronic wallets.

"I want to emphasize that there is no new tax policy that automatically imposes VAT on every interbank transfer or digital wallet transaction," Suahasil told a press conference of the Financial System Stability Committee (KSSK) in Jakarta.

The clarification followed remarks by Hashim Djojohadikusumo, President Prabowo Subianto's younger brother, who said a digital tax collection mechanism would take effect on Nov. 9.

His comments prompted speculation that banks and financial technology companies would be required to collect VAT on all money transfers.

Suahasil said the policy in question concerns the collection of taxes on taxable overseas digital transactions under Finance Ministry Regulation No. 49 of 2026.

The system is intended to improve VAT collection on cross-border digital transactions already subject to tax under existing legislation, rather than introduce a new levy on the movement of money.

He explained that transferring funds between bank accounts or sending money through an electronic wallet does not, by itself, create a VAT obligation.

VAT Applies to Service Fees, Not Money Transferred
Suahasil explained that taxation of financial technology services is already governed by Finance Ministry Regulation No. 69 of 2022, which covers income tax and VAT on financial technology activities.

Under the regulation, VAT may apply to fees charged by providers for certain taxable financial services.

However, the tax is calculated on the applicable service fee rather than the total amount of money transferred.

A transfer that does not involve a taxable service fee does not automatically incur VAT simply because money changes accounts.

His explanation is intended to reassure consumers that the government's digital tax collection initiative does not amount to a blanket tax on everyday financial transactions.

Six Institutions Appointed as Tax Collectors
Director General of Taxes Bimo Wijayanto has designated six institutions to collect VAT on eligible overseas digital transactions, comprising five bank card issuers and one financial technology company.

The appointments are part of the government's efforts to strengthen compliance in the digital economy and improve tax collection on cross-border transactions.

Speaking on Oct. 29, Hashim, who also chairs the advisory board of the Indonesian Chamber of Commerce and Industry (Kadin), said the digital tax collection system would begin operating on Nov. 9.

"All state-owned banks, private banks, and fintech companies, including Shopee, Lazada, GoTo, and others, must participate in collecting and remitting taxes that have not previously been collected," Hashim said.

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