Four marketplaces designated to withhold PPh Article 22 on online sellers

TaxPMK 37/2025Effective: July 1, 2026

On 1 July 2026 the Directorate General of Taxes designated Tokopedia, Shopee, Lazada and Blibli as collectors of PPh Article 22 on income earned by domestic merchants through their platforms, implementing PMK 37/2025. Collection begins 1 August 2026.

Key points

Announced by the Director General of Taxes at a press conference in Jakarta on 1 July 2026.
Designated platforms: Tokopedia, Shopee, Lazada and Blibli.
Rate: 0.5% of gross turnover, excluding PPN and PPnBM.
Collection by the platforms starts 1 August 2026.
DJP emphasises this is not a new tax — it shifts administration from the merchant to the platform.

What this means for Japanese companies

If your Indonesian entity sells through any of these marketplaces, 0.5% of gross turnover will be withheld at source from August. Book the withholding as a prepayment and reconcile it against your annual corporate income tax — otherwise it sits unclaimed. Check that the tax ID registered on each platform matches your entity.

Sources

This page summarises publicly available information for orientation. It is not tax, legal, or accounting advice, and regulations change. Verify against the linked primary sources and contact us before acting on anything here.

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