IDEAS home Printed from
   My bibliography  Save this article

E-commerce Taxation and Fiscal Policy Perspective: The Case of Indonesia


  • Sigit Setiawan

    (Senior Researcher at Fiscal Policy Agency, Ministry of Finance Indonesia)


The Indonesian government is now seriously exploring in depth the proposed tax imposition for e-commerce. In this context, this paper will discuss the following issues: the first, if Indonesian government should impose the tax on e-commerce; the second, how much the potential tax revenue from e-commerce is; and the third, how Indonesian fiscal policy perspective views e-commerce taxation. The study in this paper adopts a descriptive analytical research method. The study concludes several points. Indonesia should tax its e-commerce. The total potential tax revenue on e-commerce from VAT and income tax in 2018 ranges from almost Rp11.75 trillion to Rp16.64 trillion, with VAT dominates the contribution up to more than 90% of the total tax revenue. By not levying the tax in the year means Indonesian government will lose a partial or the most of tax revenue. The revenue loss is potentially getting bigger in the coming years if the government still fails to collect the tax. E-commerce taxation should not be strictly enforced in the beginning, yet more is emphasized on socialization and education actions. It is also intended to help the online platform to be compliant. Tax policy in Indonesian e-commerce can be potentially used for the purpose of regulating the economy, such as to control excessive online import purchasing. Key Words: E-Commerce, Taxation, Fiscal Policy, Tax Revenue

Suggested Citation

  • Sigit Setiawan, 2018. "E-commerce Taxation and Fiscal Policy Perspective: The Case of Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 7(3), pages 01-09, July.
  • Handle: RePEc:rbs:ijbrss:v:7:y:2018:i:3:p:01-09

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Austan Goolsbee, 2001. "The Implications of Electronic Commerce for Fiscal Policy (and Vice Versa)," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 13-23, Winter.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:7:y:2018:i:3:p:01-09. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Umit Hacioglu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.