Indonesia’s Digital Economy Yields $1.75 Billion in Tax Revenue by 2024

From 2022 through August 2024, Indonesia’s digital economy sector generated $1.75 billion in tax revenue, according to the Taxation Directorate General under the Ministry of Finance.

This revenue was collected through Value Added Tax (VAT) from e-commerce platforms and marketplaces, taxes on cryptocurrency, peer-to-peer lending (P2P) taxes, and procurement taxes via the Government Procurement Information System (SIPP tax).

Dwi Astuti, Director of Counseling, Services, and Public Relations, revealed that since 2020, e-commerce VAT has brought in around $1.4 billion from 166 registered collectors, with $340 million collected in 2024 alone.

Since 2022, Indonesia’s crypto taxes have amassed almost $55 million, with $26 million from income tax on cryptocurrency trades and approximately $29 million from VAT on crypto transactions.

Fintech taxes from online loans have contributed an additional $153 million between 2022 and August 2024.

Other sectors within the digital economy, such as procurement through SIPP, accounted for a rough $141 million in tax revenue, including $9.6 million from income tax and $132 million from VAT.

Dwi stated that the government is committed to taxing digital business actors to ensure fairness between e-commerce and traditional trade.

The Ministry of Finance is also investigating further tax revenue opportunities from digital businesses, including taxes on crypto asset trading, fintech taxes on loan interest, and additional SIPP taxes.

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