Jakarta. The House of Representatives’ Commission XI, which oversees finance and the state budget, on Wednesday approved a government proposal to impose a 0.5% tax on e-commerce sellers with annual gross sales exceeding Rp 500 million ($28,241).

Under the proposed scheme, the 0.5% tax would apply to the portion of annual sales exceeding the Rp 500 million threshold. Sellers with annual turnover above Rp 4.8 billion would instead be subject to the standard value-added tax (VAT) regime, under which the rate is currently capped at 12%.

Commission XI Chairman Mukhamad Misbakhun said the policy was designed to increase government revenue from digital transactions without imposing an additional burden on micro, small, and medium enterprises with relatively low turnover.

The taxation of digital and e-commerce transactions will be incorporated into the proposed 2027 state budget. One of the measures agreed upon by the government and the House is a 0.5% Article 22 income tax on online sellers.

For example, an e-commerce seller recording Rp 700 million in annual gross sales would pay no tax on the first Rp 500 million, while the remaining Rp 200 million would be subject to the 0.5% levy.

As part of the 2027 budget plan, the government and the House agreed on a combined tax and customs and excise revenue target of Rp 2,908 trillion. The figure comprises Rp 2,591.4 trillion in tax revenue and Rp 316.6 trillion from customs and excise.

Overall, the government and the House have agreed on a state revenue target of Rp 3,426 trillion for 2027. The target also includes Rp 517.4 trillion in non-tax state revenue and Rp 700 billion in grants.

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