Indonesia Appoints OpenAI as Digital Tax Collector as Revenue from Digital Economy Soars

Indonesia Targets AI Giants in Digital Tax Expansion

Indonesia has formally appointed OpenAI Operating Company, LLC as a collector of value-added tax on digital trade, marking the latest expansion of the country’s tax regime for cross-border electronic transactions. The designation places OpenAI OpCo—the operating company responsible for OpenAI’s commercial and day-to-day activities—subject to Indonesia’s value-added tax on trade conducted through electronic systems, commonly referred to as digital VAT.

This move signals a broader trend in Indonesia’s approach to taxation in the digital age, as the government continues to strengthen its revenue collection framework for the rapidly growing digital economy. The appointment comes as part of a broader update to Indonesia’s digital tax collection system, which now encompasses 254 companies designated as digital VAT collectors.

Rosmauli, Director of Counseling, Services, and Public Relations at the Directorate General of Taxes, announced the appointment on Monday, stating that this development reflects the increasing importance of the digital economy to state revenue. The inclusion of companies operating in the artificial intelligence sector demonstrates how digital services are becoming an increasingly significant contributor to Indonesia’s fiscal resources.

Understanding Indonesia’s Digital VAT Framework

Indonesia’s digital VAT system represents the government’s effort to ensure fair taxation in the modern digital economy. The framework, implemented since July 2020, requires foreign digital service providers to collect and remit value-added tax on services sold to Indonesian users. This approach, known locally as VAT on electronic system trading (PMSE in Indonesian), aims to level the playing field between domestic and foreign digital service providers.

The digital VAT applies to various services including streaming platforms, digital marketplaces, software services, and now AI-powered tools like ChatGPT. Rather than taxing the companies based on their physical presence in Indonesia, this system requires them to register as VAT collectors and add the tax to purchases made by Indonesian users.

This model follows international best practices for digital taxation, where countries apply consumption taxes based on where the service is consumed rather than where the provider is located. For Indonesian users, this means seeing tax added to their digital service purchases, similar to how traditional goods are taxed.

The approach has proven effective for Indonesia, with digital tax revenue showing consistent growth since implementation. From modest beginnings in 2020, the system has evolved to capture revenue from various sectors of the digital economy, including electronic commerce, fintech, cryptocurrency transactions, and now AI services.

New Appointments and Revocations in Digital Tax Collector List

Alongside OpenAI OpCo, the Indonesian government has appointed two other entities as digital VAT collectors: the International Bureau of Fiscal Documentation and Bespin Global. These additions expand the government’s oversight of cross-border digital activities and ensure comprehensive coverage of digital services consumed in Indonesia.

Simultaneously, the tax authority revoked the digital tax collector status of Amazon Services Europe, reflecting periodic reviews of eligible companies under the digital tax framework. This adjustment demonstrates the dynamic nature of the digital tax system, where companies are regularly evaluated based on their current operations and compliance status.

With these changes, Indonesia has now designated 254 companies as VAT collectors for electronic system trading as of November 30, 2025. However, not all of these companies have begun collecting and remitting the tax, highlighting ongoing compliance challenges in the fast-evolving digital sector. As of late November, 215 digital service providers had actively collected and paid VAT, showing the practical implementation of the tax framework.

The inclusion of Bespin Global, a cloud management service provider, and the International Bureau of Fiscal Documentation, which specializes in tax information, alongside OpenAI, shows the diverse range of digital services now falling under Indonesia’s tax net. This diversity reflects the comprehensive nature of the country’s approach to digital taxation.

Digital Tax Revenue Shows Impressive Growth

Indonesia’s digital tax collection efforts have yielded substantial results since the implementation of the VAT on electronic system trading in July 2020. According to data from the Directorate General of Taxes, total digital tax revenue reached Rp 44.55 trillion ($2.7 billion) as of November 30, 2025.

This revenue figure comprises several components of the digital economy: Rp 34.54 trillion from digital trade VAT, Rp 1.81 trillion from crypto-asset transaction taxes, Rp 4.27 trillion from fintech peer-to-peer lending taxes, and Rp 3.94 trillion from other digital taxes collected through various government systems.

The growth trajectory has been particularly impressive, with digital VAT revenue increasing year by year. In 2020, the first year of implementation, the system collected Rp 731.4 billion. This figure jumped to Rp 3.9 trillion in 2021, then Rp 5.51 trillion in 2022, Rp 6.76 trillion in 2023, and Rp 8.44 trillion in 2024. As of November 2025, collections had reached Rp 9.19 trillion for the year, demonstrating continued expansion.

Rosmauli emphasized that these figures reflect the expanding role of the digital economy in Indonesia and its rising contribution to government revenue. The consistent growth year after year suggests both increasing digital consumption among Indonesians and improving compliance from digital service providers.

The appointment of digital tax collectors from the AI sector shows that the digital economy is increasingly delivering tangible benefits to the public, particularly in supporting government revenue,

said Rosmauli in a statement regarding the significance of including OpenAI in the tax collection framework.

Cryptocurrency and Fintech Contribute to Digital Tax Revenue

Beyond digital VAT on services like those provided by OpenAI, Indonesia has developed a comprehensive approach to taxing various aspects of the digital economy. Cryptocurrency transactions have emerged as a significant source of revenue, with Rp 1.81 trillion collected in crypto-asset taxes since implementation of these measures.

The growth in crypto tax revenue has been particularly dramatic, almost tripling from just Rp 246.45 billion in 2022 to Rp 719.61 billion in 2025. This substantial increase reflects both the growing popularity of cryptocurrency trading in Indonesia and the government’s success in implementing effective tax collection mechanisms for these digital assets.

Financial technology peer-to-peer lending activities have also contributed substantially to digital tax revenue, with collections totaling Rp 4.27 trillion between 2022 and 2025. This sector witnessed a similar upward trajectory, with revenue increasing from Rp 446.39 billion in 2022 to Rp 1.24 trillion approximately three years later.

The government has also implemented tax collection through the government procurement information system (SIPP), which has gathered at least Rp 3.94 trillion since 2022. This system helps capture revenue from various digital economy businesses that might otherwise fall outside traditional tax collection frameworks.

Global Context: Indonesia Part of International Digital Tax Trend

Indonesia’s approach to taxing digital services aligns with a global trend as countries worldwide seek to ensure that digital companies contribute fairly to local economies. Similar frameworks have been implemented across Southeast Asia and globally, as governments adapt tax systems designed for traditional commerce to the digital age.

The challenge stems from the nature of digital services, which can be provided remotely without a physical presence in the consuming country. This created situations where companies could generate significant revenue from users in a country without paying taxes there, leading to concerns about fairness and lost revenue.

Indonesia’s system of appointing companies as VAT collectors provides a practical solution to this challenge. Rather than requiring complex tax calculations based on where value is created, the system simply requires providers to add standard VAT to transactions with Indonesian users and remit it to the government.

This approach has gained traction globally, with many countries implementing similar frameworks. Nigeria, for example, recently implemented a 7.5% VAT on OpenAI services, affecting ChatGPT users in that country. Such measures demonstrate how governments worldwide are adapting tax systems to capture revenue from borderless digital services.

For OpenAI, these developments mean the company must navigate an increasingly complex global tax landscape. As a provider of AI services used worldwide, the company must comply with varying tax regulations in different jurisdictions while maintaining consistent pricing for users where possible.

Impact on Indonesian Consumers and Businesses

For Indonesian consumers, the appointment of OpenAI as a VAT collector means that purchases of ChatGPT Plus and other paid OpenAI services will likely include value-added tax. While the standard VAT rate in Indonesia is typically 11%, the exact application to OpenAI services will depend on specific regulatory guidance.

This development follows the pattern established with other digital services, where Indonesian users see tax added to subscriptions and purchases from foreign providers. For businesses using OpenAI services, the inclusion of VAT creates additional accounting considerations but also ensures compliance with local tax regulations.

The broader implication is that as more digital services become subject to Indonesian VAT, the tax treatment of digital purchases becomes more standardized across providers. This creates a fairer environment where both domestic and foreign service providers follow the same tax rules, reducing any pricing advantages that foreign companies might have previously enjoyed.

For the Indonesian tech ecosystem, this development represents recognition of the maturity and importance of digital services in the country. By taxing AI services alongside more established digital offerings like streaming and e-commerce, Indonesia acknowledges AI’s growing role in the digital economy.

Local tech companies benefit from this leveled playing field, as foreign competitors must factor Indonesian taxes into their pricing structures just as domestic companies do. This fairness helps support the growth of Indonesia’s own digital economy while ensuring that the government captures appropriate revenue from all digital activity in the country.

Future of Digital Taxation in Indonesia

Looking forward, Indonesia’s digital tax framework will likely continue expanding as new types of digital services emerge and gain adoption. The rapid development of artificial intelligence, extended reality, and other emerging technologies presents ongoing challenges and opportunities for tax authorities.

The appointment of OpenAI suggests that Indonesia’s tax authorities are actively monitoring developments in the digital economy and updating tax collection systems accordingly. As AI services become more integrated into business operations and consumer applications, their contribution to tax revenue will likely grow.

The impressive growth in digital tax revenue—from under Rp 1 trillion in 2020 to nearly Rp 10 trillion projected for 2025—demonstrates the effectiveness of Indonesia’s approach. This revenue stream will likely become increasingly important as the digital economy continues to expand its share of overall economic activity.

At the same time, the government will need to balance revenue collection with maintaining an environment that encourages digital innovation and investment. Overly burdensome tax requirements could potentially discourage the adoption of beneficial technologies, while too light a touch means missing out on legitimate revenue.

The revocation of Amazon Services Europe’s digital tax collector status alongside the new appointments shows that Indonesia’s system includes regular review mechanisms to ensure accuracy and appropriateness. This adaptability will be crucial as the digital landscape continues to evolve rapidly.

Key Points

• Indonesia has appointed OpenAI Operating Company, LLC as a collector of value-added tax on digital trade
• The appointment is part of a broader expansion of Indonesia’s tax regime for cross-border electronic transactions
• 254 companies have now been designated as digital VAT collectors in Indonesia
• Digital tax revenue reached Rp 44.55 trillion ($2.7 billion) as of November 30, 2025
• Digital VAT revenue has grown consistently: Rp 731.4 billion (2020), Rp 3.9 trillion (2021), Rp 5.51 trillion (2022), Rp 6.76 trillion (2023), Rp 8.44 trillion (2024), and Rp 9.19 trillion (2025 YTD)
• Crypto-asset taxes contributed Rp 1.81 trillion, while fintech peer-to-peer lending taxes added Rp 4.27 trillion
• The system appoints foreign digital companies as VAT collectors who add tax to purchases by Indonesian users
• 215 of the 254 designated companies have actively collected and remitted taxes
• Indonesia’s approach aligns with global trends in taxing borderless digital services
• The move reflects the growing importance of AI and digital services to Indonesia’s economy and tax revenue