Indonesian e-commerce companies will begin withholding income tax from sellers revenue starting from November 1.

The Indonesian Tax Authority stated on Wednesday evening that after Jakarta's second delay of the plan to boost purchasing power, Indonesian e-commerce platforms will begin levying income tax on sellers' earnings starting November 1. The tax authority remarked, "This deferment is aimed at maintaining the public's purchasing power in light of the government's focus on the current economic situation." The tax authority added that any income tax already collected from sellers will be refunded. The Indonesian government previously indicated that Tokopedia, Shopee under Sea Group, Lazada invested by Alibaba, and Blibli have been designated as tax collection agencies. In its announcement, the tax authority mentioned that it will revoke the designated tax collection status for these four e-commerce platforms and will later resume the selection process. In response, the Indonesian E-commerce Association (idEA) stated on Wednesday that major e-commerce platforms have been making preparations to ensure a smoother implementation of the tax policy when it is finally enacted. Jakarta originally planned to implement this tax plan last year, but it was postponed to this year due to protests from sellers and platforms.