Antara News·Indonesia·Tuesday, November 3, 2026 at 01:12 PM UTC

Finance minister dismisses claims of VAT on all money transfers

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I. Silfia, Tegar Nurfitra

Jakarta (ANTARA) - Indonesian Finance Minister Suahasil Nazara has clarified that the government has no plans to introduce a policy imposing value-added tax (VAT) on all transfers between banks or digital wallets.

"I hereby affirm that there is no new policy that automatically imposes VAT on every transfer transaction between banks or digital wallets," he remarked during a press conference of the Financial System Stability Committee (KSSK) in Jakarta.

Nazara made the statement on Tuesday in response to public debate over remarks by Hashim Djojohadikusumo, a senior adviser to the Indonesian Chamber of Commerce and Industry (Kadin), who suggested that the proposed VAT policy might take effect on Nov. 9.

The minister emphasized that the policy in question refers to a 2026 Finance Ministry regulation governing the implementation of the Tax Collection System for Foreign Digital Transactions (SPP-TDLN).

He added that the taxation scheme had already been introduced by the ministry's Directorate General of Taxes.

The system, he continued, is intended to improve the effectiveness of VAT collection on foreign digital transactions and is consistent with existing laws and regulations.

With that in mind, Nazara assured the public that the implementation of the SPP-TDLN does not constitute an expansion of VAT to every domestic transfer between banks or digital wallets.

He further noted that the Finance Ministry had already issued a regulation governing VAT on such transactions in 2022.

VAT may only be imposed on administrative fees charged by transfer service providers, he added, stressing that the tax is not calculated based on the amount of money being transferred.

The Finance Ministry rolled out SPP-TDLN on Sept. 25, 2026, designating five banks and one financial technology company as issuers.

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