Navigating Indonesia’s Evolving Digital Rules

Indonesia’s digital economy is one of the fastest-growing in the world, reshaping how people live, work, and play. As adoption accelerates, policymakers are acting quickly to make sure this growth is sustainable, inclusive, and secure.

Regulation is catching up with innovation. The government is balancing local creativity and consumer protection while ensuring fair competition and attracting global investment. The result: a clearer, more predictable environment for digital businesses to thrive.

Policy evolution and its impact

To align with global standards, Indonesia has strengthened its digital regulatory framework across several key areas:

• Digital Taxation: Since 2020, foreign digital companies including Amazon, Apple, Google, and Microsoft have been required to charge an 11% value-added tax (VAT) on sales to Indonesian consumers. This policy ensures global players contribute fairly to the national economy.
• Registration and Licensing Oversight: Introduced in 2020, Indonesia’s Private Electronic System Provider (PSE) registration framework requires both local and foreign digital platforms to register with government authorities, in this case, the Ministry of Communication and Digital Affairs (Komdigi). Enforcement has since intensified—eBay’s termination of access being a notable example. The 2024 Electronic Information and Transactions Law (EIT) amendment further strengthens government oversight, extending authority over platform compliance and content moderation.
• Online and Child Safety: Indonesia is taking decisive steps to build a safer digital environment for its youth In March 2025, the government introduced Southeast Asia’s first comprehensive child-safety framework, requiring platforms to strengthen age verification, parental controls, and harmful-content prevention. Reinforcing this progress, the Indonesian Game Rating System (IGRS) was unveiled at IGDX 2025, setting standardized age ratings for games and online content. Enforcement is expected to begin in January 2026.

Indonesian policymakers are learning from global best practices– studying regulations like Europe’s General Data Protection Regulation (GDPR) to shape their own digital governance frameworks. The Indonesian government’s approach aligns with other ASEAN markets such as Vietnam and Thailand, which have also introduced mandatory registration requirements for foreign digital service providers. Together, these policies are building a more structured, secure, and trusted digital ecosystem that benefits both consumers and businesses.

Partnering for Success in a Regulated Market

Indonesia is transforming into a highly regulated digital market where access and success are contingent on strict adherence to local laws and contexts. For global publishers, that means more than just market entry – it means strategic alignment for growth.

As regulations evolve, Coda helps you stay ahead. We simplify the complex rules so you can focus on creating and monetizing content. Beyond payments, we help you localize, comply, and grow confidently in Indonesia and across Southeast Asia.

As a one-stop payments infrastructure provider, we handle the heavy lifting of payments, taxes, compliance, and fraud prevention, so you can focus on creating amazing content and connecting with your audience.

Here’s how Coda empowers you in Indonesia and beyond:

• Global Reach, Local Expertise: With one simple, seamless integration, you unlock access to over 200 million paying users across 70+ markets worldwide. Our local experts ensure you stay relevant and compliant.
• Diverse Payment Channels: Your customers pay their way, with access to over 400 payment channels, covering more than 90% of the world’s preferred payment methods. 
• Reduced Risk & Fraud: We actively fight fraud and manage risks, protecting your revenue and reputation.
• Simplified Compliance: We handle the complexities of tax, regulatory compliance, and cross-border payments, so you don’t have to.

Indonesia’s digital journey has huge growth potential. By embracing its evolving regulatory landscape and fostering collaboration between the private and public sectors, we can together build a more secure, equitable, and thriving digital economy for everyone. 

Fast-track your growth in Indonesia: Talk to us.