Indonesia's E-commerce Tax Implementation: Risk of Price Hikes for Consumers

Indonesia has implemented a 0.5% income tax (PPh Pasal 22) for sellers on e-commerce platforms. While consumers will not face direct additional charges, there's a potential for sellers to pass on the tax burden, leading to concerns about price increases. The Indonesian E-commerce Association (idEA) clarifies that the tax is deducted directly from sellers' transactions.