Jakarta. Finance Minister Purbaya Yudhi Sadewa denied on Thursday that the government would begin requiring e-commerce platforms to collect income tax on sales made by its merchants starting in February, despite his subordinate’s claim that the policy would come into effect in about 8 months from now.

Earlier in the day, Tax Director General Bimo Wijayanto was quoted by the media as saying that the e-commerce tax would only be put on hold until February 2026. Under this regime, online merchants will be subject to a 0.5 percent income tax.

Purbaya revealed that he was startled by the news, saying that he’d prefer to wait until the economy bounces back, or even grows at least 6 percent.

“Well, I am the minister. Like I said, we would only implement it once the economy has recovered. We will recover, but not fully,” Purbaya said at the 2025 Investor Daily Summit in Jakarta. 

“I will consider [the e-commerce tax] if our economy expands at 6 percent or beyond,” he added.

Purbaya’s predecessor, Sri Mulyani, issued the e-commerce tax regulation in mid-July. The new rule states that e-commerce platforms that meet certain criteria must withhold and pass on the 0.5 percent income tax on sellers who earn more than Rp 500 million (around $30,151) a year. The merchants have to report their sales invoices to the platforms, which will then share the information with tax authorities.

Indonesia’s economy expanded 5.12 percent year-on-year in the second quarter. E-commerce activities largely drive Indonesia’s internet economy, which is the biggest in the ASEAN region. 

The government initially wanted to bank on the e-commerce tax to target the shadow economy and vendors who did not pay taxes. Indonesia saw a 5.1 percent year-over-year (yoy) drop in tax collection as of the end of August, reaching only Rp 1.1 quadrillion ($68.5 billion), the government reported.